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Elements and Performance Criteria

1. Identify the system constraint (bottleneck)
   • Identify desired output from process/system
   • Determine throughput of process/system steps
   • Identify capacity constrained resource (bottleneck)
   • Confirm maximum/optimum throughput for this capacity constrained resource

Required Skills

Required skills

Required skills include identifying steps and processes in current operations identifying current performance against key performance indicators KPIs determining where performance especially suboptimal performance relates to unique factors or is a manifestation of other symptomscircumstances manipulating data to determine capacity buffers delivery schedule throughput and other required information communicating with relevant people and asking leading questions applying resources to maximise output of capacity constrained resource drumbufferrope approach

Required knowledge

Required knowledge includes theory of constraints including concepts of weakest link often colloquially known as the drum duration in production applications this is often known as material release buffer or inventory to protect the weakest linkconstraint release timing of buffer colloquially called rope organisation processes products and internal and external customers

Evidence Required

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria required skills and knowledge range statement and the Assessment Guidelines for the Training Package
Critical aspects for assessment and evidence required to demonstrate competency in this unit	A person who demonstrates competency in this unit must be able to provide evidence of the ability to identify capacity constrained resource manage capacity constrained resource drum determine schedule based on capacity constrained resource
Context of and specific resources for assessment	Assessment of performance must be undertaken in a workplace using or implementing one or more competitive systems and practices Access may be required to workplace procedures and plans relevant to work area specifications and documentation relating to planned currently being implemented or implemented changes to work processes and procedures relevant to the assessee documentation and information in relation to production waste overheads and hazard controlmanagement reports from supervisorsmanagers case studies and scenarios to assess responses to contingencies minutes of meetings and other records relevant to determining and dealing with the core conflict
Method of assessment	A holistic approach should be taken to the assessment Competence in this unit may be assessed by using a combination of the following to generate evidence demonstration in the workplace workplace projects suitable simulation case studiesscenarios particularly for assessment of contingencies improvement scenarios and so on targeted questioning reports from supervisors peers and colleagues thirdparty reports portfolio of evidence In all cases it is expected that practical assessment will be combined with targeted questioning to assess underpinning knowledge Where applicable reasonable adjustment must be made to work environments and training situations to accommodate ethnicity age gender demographics and disability
Guidance information for assessment	Assessment processes and techniques must be culturally appropriate and appropriate to the oracy language and literacy capacity of the candidate and the work being performed

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Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Competitive systems and practices	Competitive systems and practices may include, but are not limited to: lean operations agile operations preventative and predictive maintenance approaches monitoring and data gathering systems, such as Systems Control and Data Acquisition (SCADA) software, Enterprise Resource Planning (ERP) systems, Materials Resource Planning (MRP), and proprietary systems statistical process control systems, including six sigma and three sigma Just in Time (JIT), kanban and other pull-related operations control systems supply, value, and demand chain monitoring and analysis 5S continuous improvement (kaizen) breakthrough improvement (kaizen blitz) cause/effect diagrams overall equipment effectiveness (OEE) takt time process mapping problem solving run charts standard procedures current reality tree Competitive systems and practices should be interpreted so as to take into account: the stage of implementation of competitive systems and practices the size of the enterprise the work organisation, culture, regulatory environment and the industry sector
Constraint/capacity constrained resource	A capacity constrained resource refers to: the step in a process or part of a system which limits the output of the entire system or process (colloquially known as a bottleneck)
Drum	The capacity constrained resource is often referred to as the drum, as its output provides the ‘drumbeat’ for the output of the entire system or process
Buffer	Buffer refers to: the slack time required in the system to protect the capacity constrained resource (drum) against disruption (in a physical process this is usually represented by work in progress)
Optimum use of capacity	Optimum use of capacity refers to: ensuring the capacity constrained resource is not diverted or prevented from producing at its limit
Supply schedule (‘rope’)	Supply schedule refers to: ensuring the capacity constrained resource has what it needs when it needs it (often referred to as ‘the rope’ – the system which releases supply as needed)
Delivery schedule	Delivery schedule refers to: what the system/process is actually able to deliver from the capacity constrained resource once it has been appropriately buffered and supplied
Appropriate action	Appropriate action may include: advising customers and stakeholders of the actual production capacity

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